AI · 2026-11-05
Kakao to Buy Back 150 Billion Won in Treasury Shares and Cancel Them in Full, Boosting Shareholder Returns Ahead of Spin-Off
Kakao will buy back 5,154,639 common shares for about 150 billion won and cancel them entirely. The move, equal to about 1.16% of total shares outstanding, comes as the gap widens between market expectations for its AI business and the company’s valuation, prompting a stronger push for shareholder returns.
Kakao will buy back treasury shares worth about 150 billion won and then cancel them in full. Coming ahead of a spin-off, the move is part of the company’s efforts to strengthen shareholder returns and enhance corporate value, against a backdrop of growing concern that there is a widening gap between Kakao’s view of its future growth potential and the market’s assessment.
On the 5th, Kakao disclosed that its board had decided to purchase 5,154,639 common shares on the open market. The shares to be acquired represent about 1.16% of the company’s current total outstanding shares. The buyback is scheduled to run from the 6th through February 5 next year on the KOSPI market through NH Investment & Securities. The roughly 150 billion won acquisition amount was calculated based on the closing price of 29,100 won on the 4th, the day before the board resolution, though the actual number of shares and total amount may change depending on the stock price during the buyback period.
The shares will be fully canceled after the repurchase is completed. Unlike simply buying back treasury shares and holding them, cancellation reduces the number of shares outstanding. According to Kakao, the cancellation will apply to treasury shares acquired within the scope of distributable profits. While the total number of outstanding shares will decrease, there will be no change to share capital. However, the exact timing of the cancellation has not yet been decided.
This decision differs from the plan Kakao announced in August. At the time, the company stated in its treasury share report that it had no plan to acquire treasury shares, but at this board meeting it finalized a 150 billion won buyback-and-cancel plan.
Kakao also acknowledged that the pace of AI service expansion has not met capital market expectations. CEO Jeong Shin-a said during the third-quarter earnings conference call that she accepted the market’s critical assessment, adding that during the process of shifting its governance structure, the gap widened between the company’s expected future growth potential and the value the market assigns to it.
Buying back and canceling shares is one way to return value to shareholders by reducing the share count, but by itself it does not guarantee a higher stock price or a recovery in corporate value. Going forward, investors will be watching closely not only how the planned buyback proceeds, but also the performance of Kakao’s AI business and how the governance transition affects market sentiment.
On the 5th, Kakao disclosed that its board had decided to purchase 5,154,639 common shares on the open market. The shares to be acquired represent about 1.16% of the company’s current total outstanding shares. The buyback is scheduled to run from the 6th through February 5 next year on the KOSPI market through NH Investment & Securities. The roughly 150 billion won acquisition amount was calculated based on the closing price of 29,100 won on the 4th, the day before the board resolution, though the actual number of shares and total amount may change depending on the stock price during the buyback period.
The shares will be fully canceled after the repurchase is completed. Unlike simply buying back treasury shares and holding them, cancellation reduces the number of shares outstanding. According to Kakao, the cancellation will apply to treasury shares acquired within the scope of distributable profits. While the total number of outstanding shares will decrease, there will be no change to share capital. However, the exact timing of the cancellation has not yet been decided.
This decision differs from the plan Kakao announced in August. At the time, the company stated in its treasury share report that it had no plan to acquire treasury shares, but at this board meeting it finalized a 150 billion won buyback-and-cancel plan.
Kakao also acknowledged that the pace of AI service expansion has not met capital market expectations. CEO Jeong Shin-a said during the third-quarter earnings conference call that she accepted the market’s critical assessment, adding that during the process of shifting its governance structure, the gap widened between the company’s expected future growth potential and the value the market assigns to it.
Buying back and canceling shares is one way to return value to shareholders by reducing the share count, but by itself it does not guarantee a higher stock price or a recovery in corporate value. Going forward, investors will be watching closely not only how the planned buyback proceeds, but also the performance of Kakao’s AI business and how the governance transition affects market sentiment.
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